Microgaming and 5050 Poker Continue to Battle
- 07/19/2012By Maria McCoyGoogleMicrogaming Poker Network and 5050 Poker continue to debate the details of the top rated online casino platform's decision to revoke 5050 Poker's license. Microgaming has said that they made the move because they believe that the poker room was in liquidation and failed to pay players. 5050 Poker stated that they paid Microgaming €150,000 in fines.
Microgaming is contesting that claim in a statement that reads, “5050 Poker did not pay €150,000 in fines. From April 2010 to June 2012, a system of reallocation of funds between Operators, called “Rake Reconciliation”, was used on the Network. Rake Reconciliation corrected the imbalance that occurs in a poker network ecosystem when rake is the only valuation metric. Similar methods are in use on other networks and are industry standard."
The Microgaming statement went on to say, “It is this system of funds reallocation that is referred to in 5050 Poker’s statement, not “fines”. It is important to note that the reallocation of funds takes place between Operators within the Clearing House bank account, which at no time holds player balances from any Operator on the Network. MPN cannot access an Operator’s player accounts. “The suggestion that MPN imposed a simultaneous table restriction on 12 June 2012 without prior warning is incorrect.”
In response 5050 wrote, "The operational costs of 5050 Poker Ltd has for a long time exceeded the revenues, resulting in players’ funds being used in the operations of the company. This has been enhanced by the fact that Microgaming, has been fining 5050 Poker Ltd. In excess of € 150.000, that incorrectly has been withdrawn from the players’ accounts."